Recent volatility in financial markets

Earlier this year we posted an update on the Scheme website in which we talked about the crisis in Ukraine, and how this was causing volatility in investment markets and, by consequence, in some of the Scheme’s investment funds. We are now going through another period of volatility, as markets have reacted to the Chancellor’s September 2022 “mini budget” and subsequent events. This will mean that for some members of the Employee Pension Plan or the Pension Savings Plan you may have seen the value of your pension pot fall.

Whilst the neither the Trustee nor the William Hill Pension Department can give you advice on where to invest your pension pot, we thought it important to remind you of the following:

• Most of you are many years from retirement and so are investing for the long term. Although, volatility in the value of your pension pot can be unsettling, there is time for markets to recover.

• For those of you who are close to retirement and are invested in the Annuity Lifestyle fund, you will shortly be receiving a letter highlighting the factors you should consider given the recent market volatility. The Annuity Lifestyle fund targets investing 75% of your pension pot at retirement in an investment fund expected to broadly match the price of buying a non-increasing annuity and 25% in cash.Although the value of these funds has fallen, so has the cost of buying an annuity.Therefore, if you are still expecting to use your pension pot to buy a non-increasing annuity, then this fund may still be suitable. If you do not expect to buy an annuity when you come to retire, we would recommend that you consider whether this fund remains appropriate. You should consider taking financial advice or seek guidance from MoneyHelper on your options.

• If you are making your own choice of funds through the self-select funds, you can switch your pension pot into other funds if you wish. However, we would encourage you to think carefully about switching out of a fund that has just fallen in value as you could then ‘lock in’ the loss that might never be recovered through an investment market rebound. You should ask yourself whether the timing is right, given current market conditions and consider speaking to a financial adviser.

Before you decide to change your investments, we recommend that you consider speaking to a financial adviser. You can also find free guidance on the MoneyHelper website which can be found at:

www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

This update does not constitute investment advice. The Trustee is unable to offer advice as to whether any other funds are appropriate for you and would recommend that you seek impartial financial advice. The type of investments you may want to hold depends upon your personal circumstances. Past performance is not a guarantee of future performance and the value of investments, including funds, can go down as well as up.